Life is Good When You’re Living in Paris: Third Most Expensive International MarketOctober 15, 2011
Every now and then, statistics and surveys get published listing the most expensive real estate markets in the US and internationally. To name a few of the locales that usually top the list: New York, Hong Kong and London. I was thrilled to see that Paris was recently named the third most expensive luxury real estate market, since it is really booming.
Having lived and worked in Paris for several years, I have kept a hand in the luxury real estate market and know from experience how “hot” the market is – people are buying property as if there’s no tomorrow. Given the beauty and the quality of life in Paris, not to mention the incomparable gastronomy, there are two categories of buyers who help keep the prices elevated and make the Paris housing market out of reach for many average Parisians.
There are very wealthy foreign visitors who come to Paris for R&R and opt to buy large “Hotel Particulier” or single family homes that belonged to the nobility in centuries past. Or they buy large multi-bedroom condominiums, just as their second home away from home. They don’t pay too much attention to comparable sales or the value, since they have the funds and buy on impulse. These buyers commonly procure vineyards and chateaux all over France and the Riviera.
On the other hand, there are always fun-loving Francophiles who just adore Paris and visit several times a year. They buy a small “pied-a-Terre” and use it as their Parisian apartment. In some cases, they rent it out when not living there and make a profit.
The combination of these two types of extravagant buyers has made a huge impact on the price of real estate in Paris. The prices have changed drastically in the last few years. For example, someone who bought a small 1BR in the Marais (Soho of Paris) 5 years ago for 220 Euros just sold it for 790 Euros. That’s a striking difference! Multiple offers are very common as well. Buyers in this category view the purchase as investment, for when they don’t use the apt., they rent it on weekly basis and generate income on regular basis. These flats rent very well since it’s cheaper to stay in an great apt as oppose to a comparable hotel and pay five times as much.
I represent buyers through all transactions in Paris and its environs. I have several very exclusive properties for sale, and information is available upon request. Contact me to learn more about real estate in Paris.